In this article, we will discuss: 8 Best Quantum Computing Stocks to Invest In According to Hedge Funds.
On May 21, Business Insider reported that quantum computing stocks rose after the US Department of Commerce declared $2 billion in CHIPS Research and Development grants. Commerce Secretary Howard Lutnick stated, “With today’s CHIPS Research and Development investments in quantum computing, the Trump administration is leading the world into a new era of American innovation,” noting that the program had the goal to increase domestic skills and generate jobs. According to the Wall Street Journal, IBM receives almost half of the package, whereas GlobalFoundries receives $375 million, and several quantum-focused startups, including D-Wave Quantum, Rigetti Computing, and Infleqtion, each receive approximately $100 million.
Infleqtion CEO Matt Kinsella said the investment showed economic competitiveness and national security concerns, and he described quantum computing as a transformative technology. As per the Business Insider story, Infleqtion jumped by 23%, D-Wave Quantum grew 16.5%, Rigetti Computing rose 14%, GlobalFoundries surged 13%, Quantum Computing grew 11%, and IBM surged 7% in the aftermath of the announcement as investors priced in government-backed sector growth.
With that said, here are the 8 Best Quantum Computing Stocks to Invest In According to Hedge Funds.
Photo by Mika Baumeister on Unsplash
Methodology:
We used screeners to identify Quantum Computing Stocks and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. We then identified those with the highest number of hedge fund holders, which we assessed using Insider Monkey’s database of hedge funds as of Q1 2026. The stocks are ranked in ascending order of the number of hedge fund holders.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
8. Arqit Quantum Inc. (NASDAQ:ARQQ)
Number of Hedge Fund Holders: 4
Arqit Quantum Inc. (NASDAQ:ARQQ) is one of the Best Quantum Computing Stocks.
On May 21, 2026, Arqit Quantum Inc. reported Q1 fiscal 2026 revenue of $623,000, up sharply from $67,000 a year earlier and $463,000 in the prior half. It also reported eleven contracts as compared to seven in the entire year of 2025. The firm said operating costs averaged $2.6 million per month, while cash and equivalents reached $28.9 million at period end and $35.9 million by May 20, 2026.
The corporation had revenue across telecom, government, defense, and enterprise clients. The firm also launched Encryption Intelligence in January, announcing its first related contract on May 18, alongside new partnerships with Intel, 6WIND, and RAD.
CEO Andy Leaver said the “threat to cybersecurity is real.” He also noted that rising demand and contract activity show urgency around post-quantum migration. He pointed to renewed and new contracts, as well as growing partner-led sales, positioning Arqit Quantum Inc. to capture opportunities across key markets.
Arqit Quantum Inc. provides cybersecurity services through satellite and terrestrial forms. Its product is QuantumCloud, which secures devices with cloud-based quantum encryption.
7. Horizon Quantum Holdings Ltd. (NASDAQ:HQ)
Number of Hedge Fund Holders: 9
On June 3, 2026, Needham started coverage of Horizon Quantum Holdings Ltd. (NASDAQ:HQ). The firm had a “Buy” rating on the shares with a $20 price target. The firm noted that the focus is on making quantum programming as intuitive as classical systems. The analyst said the firm sees a coming “platform layer” as the industry approaches commercial advantage. It also added that Horizon holds a first-mover edge in quantum software infrastructure.
Earlier, on May 5, 2026, the corporation reported first-quarter results with a $6.5 million operating loss as compared to $4.7 million a year ago, while narrowing net loss to $3.6 million from $4.8 million, the company said. Adjusted EBITDA loss was $4.1 million from $1.8 million, with cash at $96.6 million.
Horizon Quantum Holdings Ltd.’s CEO, Dr. Joe Fitzsimons, said the business combination “provides financial runway” to accelerate R&D and expand its hardware testbed. He also pointed out that progress across partnerships and systems positions the company “towards quantum advantage.”
Horizon Quantum Holdings Ltd. is a firm that develops software tools. The company is based in Singapore.
6. Xanadu Quantum Technologies Limited (NASDAQ:XNDU)
Number of Hedge Fund Holders: 13
On May 21, 2026, Xanadu Quantum Technologies Limited (NASDAQ:XNDU) said it achieved an algorithmic breakthrough in Quantum Read-Only Memory by cutting expensive quantum operations roughly in half. It also addresses a key hardware bottleneck. The company said QROM had seen no meaningful progress for seven years, with its new approach lowering resource requirements for advanced applications.
The corporation said the improvement halves the number of Toffoli gates among the most computationally intensive operations. It also replaces qubit “swapping” with a more efficient “copying” method and eliminates unnecessary data-unloading steps across QROM sequences. These are two changes with one outcome, dropping costs sharply.
Xanadu Founder and Chief Executive Officer Dr. Christian Weedbrook said the company is “making quantum computing practical” and added that halving QROM costs drops computation expenses and speeds up timelines for real-world use. Xanadu Quantum Technologies Limited said the breakthrough allows more complex workloads on near-term systems, where limited qubits constrain performance.
Xanadu Quantum Technologies Limited works in the provision of quantum computing solutions for enterprise and government clients.
5. Infleqtion, Inc. (NYSE:INFQ)
Number of Hedge Fund Holders: 24
Infleqtion, Inc. (NYSE:INFQ) is among the Best Quantum Computing Stocks.
On May 28, 2026, Infleqtion, Inc. expanded its UK quantum operations by launching a quantum innovation center in Oxford. It delivered the country’s first operational 100-physical-qubit quantum computer to the National Quantum Computing Centre. The facility will be a hub for research, manufacturing, and systems integration, tripling Infleqtion’s capabilities. The company also conducted Royal Navy sea trials of its Tiqker optical atomic clock aboard the MOD’s Excalibur submarine and more programs, including a quantum RF sensing plan and an optical atomic clock contract.
On May 21, 2026, Infleqtion, Inc. said it signed a Letter of Intent with the US Department of Commerce for $100 million in proposed CHIPS and Science Act funding. It targets domestic quantum manufacturing and workforce growth. The firm said the milestone-based program would speed up its neutral-atom roadmap throughout hardware, photonics, and full-stack systems. It will support national security and research efforts.
Infleqtion, Inc. delivers neutral atom solutions for quantum computing, networking, sensing, and security. Its products are divided into computing, sensing, and cores.
4. D-Wave Quantum Inc. (NYSE:QBTS)
Number of Hedge Fund Holders: 26
On Jun 2, 2026, B. Riley raised its price target on D-Wave Quantum Inc. (NYSE:QBTS) to $40 from $36. The analyst maintained a “Buy” rating on the shares. The firm said the update extended the gate-model roadmap from 2026 to 2028 and “crystallized” error correction metrics as key benchmarks. The firm also noted that the company’s growth could approach five-times competitor rates, backed up by “encouraging commercial takeaways” and recent stock appreciation.
On May 21, 2026, D-Wave Quantum Inc. announced a Letter of Intent with the US Department of Commerce for $100 million in proposed CHIPS and Science Act funding. This would support its superconducting annealing and gate-model technologies. The company said the agreement, subject to final award documents, would include issuing $100 million in common stock to the Department of Commerce.
CEO Dr Alan Baratz said the proposed funding would speed up scaling of quantum innovation and fabrication processes and called it a transformative moment for the firm and the quantum sector.
D-Wave Quantum Inc. develops and engages in the delivery of quantum computing systems, software, and services. It provides professional services, including customer assistance in identifying and using quantum-computing applications.
3. Rigetti Computing, Inc. (NASDAQ:RGTI)
Number of Hedge Fund Holders: 29
On May 11, 2026, Rigetti Computing, Inc. (NASDAQ:RGTI) reported Q1 revenue of $4.4 million. It had an operating loss of $26.0 million as it continued execution on its quantum classical computing roadmap. The firm disclosed GAAP net income of $33.1 million along with a non-GAAP net loss of $14.7 million.
CEO Dr. Subodh Kulkarni said Rigetti Computing, Inc. brought its 108-qubit Cepheus-1-108Q system into availability across Rigetti QCS, Amazon Braket, Microsoft Azure Quantum, and qBraid. He called it one of the most powerful gate-based quantum systems in production use. He also noted that growing use across government, academic, and commercial customers helped revenue growth as well as on-premises Novera QPU sales.
The firm ended the quarter with $569.0 million in cash and no debt and also advanced international expansion plans. It included a proposed up to $100 million investment in the United Kingdom for a 1,000-plus qubit system within three to four years. The company also mentioned 99.8% two-qubit gate fidelity improvements and chiplet-based architecture development.
Rigetti Computing, Inc. provides quantum computing services. Through its Rigetti Quantum Cloud Services platform, the firm serves global enterprise, government, and research clients.
2. IonQ, Inc. (NYSE:IONQ)
Number of Hedge Fund Holders: 39
On May 12, 2026, IonQ, Inc. (NYSE:IONQ) announced it had opened a new quantum computing R&D lab in Boulder, Colorado. It will house semiconductor chip testing and facilities to advance future generations of its trapped-ion quantum systems. The firm said the site will support “design, testing, and iteration” of technologies central to its roadmap, with a first quantum computer installation planned later this year.
CEO Niccolo de Masi said the company is “delivering on the promise” of quantum technologies across pharmaceuticals, infrastructure, and manufacturing.
Colorado Governor Jared Polis said Boulder’s selection reinforces Colorado’s growing quantum economy and will create high-paying jobs. Boulder Mayor Aaron Brockett said the project shows a collaborative ecosystem.
President of Quantum Computing Chris Ballance said IonQ, Inc.’s trapped-ion approach uses electronics instead of lasers. It allows semiconductor-style manufacturability and scalable production toward fault-tolerant systems while improving performance at lower cost and complexity.
IonQ, Inc. makes quantum computers and specializes in quantum computing and quantum information processing.
1. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 75
On June 3, Reuters reported that Honeywell International Inc. (NASDAQ:HON)’s Quantinuum raised $1.68 billion in a US IPO, pricing 28 million shares at $60 each as investor demand jumped for quantum computing plays. The company had already lifted its range to $53-$55 and increased the offering size to 26.5 million shares, showing solid interest, Reuters noted.
Reuters said Quantinuum will begin trading on NASDAQ under the ticker “QNT,” with J.P. Morgan and Morgan Stanley leading the offering. It added that Honeywell will retain about 48.1% voting power post-listing. Hence, keeping major control while tapping public markets.
Formed in 2021 through the merger of Honeywell International Inc.’s quantum unit and Cambridge Quantum, the corporation has reported accelerating bookings in recent months despite having high development costs and an uncertain commercialization timeline.
Reuters cited that Wedbush analysts said more quantum listings “deepens the universe” and improves price discovery. It also added that Quantinuum’s early trading could “set the tone” for the market peers.
Honeywell International Inc. is a software industrial firm that provides specific industry solutions for aerospace and automotive products and services. It works in the following Aerospace Technologies, Industrial Automation, Building Automation, Energy and Sustainability Solutions, and Corporate and Other segments.
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